The United States would offer debt relief totaling roughly dollar 1 billion over a few years to Egypt through a debt swap mechanism that would invest the money to boost youth employment and support entrepreneurs - AP (File Photo)

WASHINGTON: President Barack Obama will unveil an economic aid program for Egypt and Tunisia on Thursday as part of a broad effort to support democratic reform in the Middle East and North Africa, US officials said.

Senior advisers to Obama, previewing parts of his speech, said on Wednesday the United States would offer debt relief totaling roughly dollar 1 billion over a few years to Egypt through a debt swap mechanism that would invest the money to boost youth employment and support entrepreneurs.

Washington would also loan or guarantee loans totaling up to dollar 1 billion for Egypt to finance infrastructure development and boost jobs through the Overseas Private Investment Corp (OPIC), the officials told reporters on a conference call.

The administration would also seek to foster trade in the region and encourage private sector investment, they said.

“We think these initiatives will help Egypt and Tunisia as they undertake the twin challenges of economic transformation and democratization,” one official said.